The Nassau County School Board discussed a proposed revenue-anticipation note to finance the district’s planned bus purchases during its agenda-review meeting. Staff described the financing instrument and said the formal resolution to issue the RAN will appear on the board’s action agenda.

Board members were given an overview of why staff recommend the RAN and how it would be repaid. The district’s staff member, Ellen, explained, “So a RAN is a revenue anticipation note. And instead of doing, a lease purchase agreement it's a little bit cheaper and it does better, the financing terms are a little bit better. And then ... we actually get to collect the interest of the money sitting in the ... escrow account until we use the funds.” Ellen added the district estimates about $300,000 of interest earnings while funds remain in escrow.

Why it matters: The RAN would let the district purchase school buses with a financing option staff say reduces overall cost compared with a lease purchase and produces interest income while proceeds await drawdown. Board members asked for clarifications about who will represent the district at the financing closing and how many buses are included in the purchase.

Details and questions raised: Board members identified Ford Associates as the district’s financial adviser and BMO as bond counsel for the transaction; board members also noted that John Ford of Ford Associates reviewed options before staff recommended the RAN. Ellen said the district expects to structure repayment over five years, noting the Florida statutes require RANs ordinarily to be repaid within one year but that market participants typically accommodate multi-year schedules. She warned that the RAN documents typically include penalties for early repayment during the first years.

Board members asked about scale: during the discussion a member asked, “How many buses will this...?” and the number discussed in the meeting was sixty (60). Staff did not complete a vote or final decision during the agenda review; the RAN resolution remains scheduled for the board’s action agenda at the next public meeting.

Next steps: The board will consider the formal resolution to issue the revenue-anticipation note at its upcoming meeting, when legal documents and final financing terms will be presented for approval.